Internet/e-Commerce II

Internet/e-Commerce II

 

Advanced communications using the Internet allows supply management personnel to view up-to-date pricing, as well as catalogs, specification sheets, video presentations, and other information the seller has on a material, product or service. Since the Internet does not have geographic constraints, the information is available worldwide. Or particular interest here are buying exchanges, reverse auctions, and the search capability of the internet.

 

Buying exchanges offer purchasing firms a list of pre-approved sellers that offer identical and/or similar products or services, usually within a specific category, from which to choose. Normally, prices or discounts from list prices are provided.

 

Reverse auctions identify materials, equipment, or services required and request carefully prequalified suppliers to submit bids. Potential suppliers are able to see the prices submitted by their competitors and revise their bids until the reestablished closing time for the auction. Caution must be used in employing reverse auctions since they ignore the relationship dimension of the transaction.

 

Tailored global searches allow expanded Internet search capabilities. Supply management professionals can investigate products or services by simultaneously scanning all relevant public and private websites worldwide. Obtaining the right price, quality, and delivery is becoming easier and faster as the Internet expands and more procurement-specific portals are developed.